City of Glendale TEMPORARY SALES TAX INCREASE Public Education 1Know The Facts - Public Education 2012

History Growth since 1993 – new infrastructure 1 library 32 parks 1 recreation and aquatics center 5 fire stations 1 police precinct 1 adult center Miles of streets, sewer lines, water lines and other infrastructure was necessary Know The Facts - Public Education 20122

What has Glendale reduced already to the General Fund? Since 2009: 25% decrease to departmental budgets ($40.2 million) 22% decrease to city workforce (307) Saving approximately $5.5 million with 3 years of mandatory employee furloughs Minimal service impact Know The Facts - Public Education 20123

Current Economic Conditions Lingering effects of the recession Less revenue from all sources of city revenue - sales taxes, licenses, development services Less revenue from state of Arizona (“state shared revenue”) Planned private developments went into bankruptcy, housing market collapse, foreclosures, high unemployment Know The Facts - Public Education 20124

General Fund Examples Police & fire protection and city court Libraries and pools Books and the operation of the city’s libraries Code compliance Planning & economic development Festivals Paint to cover up graffiti Operations of the city’s facilities and parks - mowing and irrigation Know The Facts - Public Education 20125

Sales Tax History Population 1993: 160,155 Population 2012: 226,721 (41% increase) Last time city increased general sales tax rate across most categories was 1993 Voter approved tax increases for police, fire and transportation initiatives in 1994, 2001 and dedicated only to those services Know The Facts - Public Education 20126

Total Sales Tax on Purchases Know The Facts - Public Education 20127

How Much is the Difference? 35¢ on a $50 item Previous Sales Tax Rate 2.2% Item: $50 Previous Rate:$1.10 Total:$51.10 Temporary Sales Tax Rate 2.9% Item: $50 Temporary Rate:$1.45 Total:$51.45 Know The Facts - Public Education Temporary sales tax sunsets after 5 years Began August 1, automatically ends August 1, 2017

Background June 2012 Glendale City Council approved: Temporary increase to city sales tax Tiered system with single item purchases over $5,000 remaining at previous rate 9Know The Facts - Public Education 2012

Is Glendale Alone? During the economic downtown, 30 Arizona cities and towns have increased their sales tax including: – Phoenix, Mesa, Tempe, Peoria, Paradise Valley, Buckeye, Cave Creek, Goodyear, Litchfield Park, Queen Creek, Tolleson, Wickenburg, Youngtown, Sierra Vista, Flagstaff and more The state of Arizona -Source: Model City Tax Code Know The Facts - Public Education

City Obligations Required to provide core services: Public safety, water, sewer & sanitation 63% of city’s general fund is for public safety Legally required to balance the budget Legally required to pay debt services Must operate and maintain city-owned Arena: – With or without a tenant – Costs to operate & maintain facility – Sales tax increase needed with or without city obligations to Jobing.com Arena Know The Facts - Public Education

What could be eliminated if there’s no temporary sales tax? (As of 9/24/12) $20 million in proposed cuts: Closure of 2 libraries and a pool Reduction in response to park maintenance Slower code compliance response Police officers, jail staff, CAT teams, crime prevention programs Firefighters, fire investigators/inspectors, Crisis Response program Eliminate all festivals: Glendale Glitters, Glitter & Glow, Chocolate Affaire, Jazz & Blues, Summer Band, downtown holiday lights Substantial reduction in services and programs Know The Facts - Public Education

More City Financial Info? The city’s website: Budget information: Financial reports: “Follow Your Money:” Know the Facts: Know The Facts - Public Education